Monday, March 16, 2009

New Generating Company for Renewable Energy

The ministry of new and renewable energy (MNRE) is considering a proposal to set up a company for generating power from renewable sourc

es. The government is expected to be a 100% owner of the proposed firm and it will tap solar, geothermal, wind, biofuel and biomass sources for power generation.
The idea behind the proposal is to have a dedicated power generation firm directly under the central government to tap renewable energy sources. MNRE has promoted a company, Indian Renewable Energy Development Agency (Ireda), that focuses on funding renewable energy initiatives.

However, the government is being cautious as the cost of renewable power generation is a major issue in India. “One has to keep in mind that power generated from renewable sources is costly in comparison to the power generated by PSUs in other sectors. Also, till now, it has been pushed through private investment. A proposal to put in public money in such an affair has to be examined before we step into it,” he added.

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